Generative AI is both a threat and a tool in fraud. Criminals exploit its lack of safety guardrails to create deepfakes, phishing content, and botnets, scaling fraud with new techniques. At the same time, financial institutions can use generative AI to improve fraud detection, streamline policy enforcement, and aid analysts in spotting scam signals like irregular withdrawals or login patterns. Email filters may also harness it to detect phishing more effectively. As fraud grows and AI advances, regulators worldwide are pushing for controls to protect privacy, reduce crime, and promote ethical development.

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